Why Are Car Insurance Premiums So High?
In particular, the growing number of insurance claims for whiplash are driving up the cost of insurance premiums by an average of £90 per year at the moment. In fact, according to the Association of British Insurers (ABI) and the Automobile Association (AA), whiplash claims are contributing to the cost of car insurances nearly doubling. Imagine how much we would all save if we stopped making claims for an injury like whiplash which is usually quite minor as well as difficult to prove.
According to the ABI a massive 570,000 people a year are claiming for whiplash injuries which cost British car insurers £2 billion in 2011. The AA feels that a large number of these are spurious or fraudulent and that the government should act decisively to deal with the issue. The government recently met with a group of insurance companies in order to discuss the possibility of increasing the limit for personal injury claims from £1000 to £5000. This would allow more whiplash cases to be dealt with by the small claims court, hopefully acting as a deterrent for fraudulent claimants who would then be billed for legal costs. Currently it is cheaper for the insurance companies to settle whiplash claims out of court, even when they suspect fraud, and this is what drives insurance premiums up for the rest of us.
The ABI does not feel this goes far enough, and has called for various measures to be implemented. These include requiring whiplash claimants to show medical evidence of injury before being entitled to compensation, either capping or reducing the amount they can claim and requiring assessment by a panel of independent doctors rather than their GP. Some countries also use bio-mechanical evidence to determine a threshold of speed under which whiplash would not realistically have occurred.
The sad fact is that there will probably continue to be fraudulent claims in one area or another of accident claims, so all the rest of us can do is continue to drive sensibly and maintain our cars responsibly. Regular car servicing and MOTs, combined with careful driving will help you to avoid accidents.
For all-inclusive prices and good old fashioned service on your MOT and car service, visit a FastFit Station in Milton Keynes. Our friendly and professional fast-fitters will check and repair your vehicle while you wait in our comfortable waiting room. We offer high quality checks and services for tyres, brakes, exhausts and more.